The stock market regulator cancelled the order to withdraw the floor price of six companies, including Salman F Rahman's Beximco, hours after the resignation of its chairman.
Bangladesh Securities and Exchange Commission (BSEC) Chairman Prof Shibli Rubayat Ul Islam stepped down on Saturday night five days after the fall of Prime Minister Sheikh Hasina-led government in the wake of a mass uprising.
Before his resignation, Prof Shibli signed an order on Thursday removing the floor price of Beximco, Khulna Power, and Shahjibazar Power, which was supposed to take effect from August 11, and of the remaining three companies -- Islami Bank, BSRM and Meghna Petroleum, to be effective from August 14.
Prof Shibli faced a lot of criticism for issuing the order at the last moment, which would let sponsors and directors of the companies to offload shares in the market.
Then Mohsin Chowdhury, the newly-appointed chairman in-charge of the BSEC, scrapped the order and kept the floor prices in place.
At present, the six companies do not have any buyer willing to buy shares at the floor prices.
The stock market regulator reset the floor prices in July 2022 to halt free fall of the market indices amid global economic uncertainties. The BSEC removed the price restriction in phases since January this year. But the six companies still have the lowest price for trading in place.
Beximco
There are widespread allegations against Prof Shibli that he had misused power to give special facilities to Beximco.
Beximco raised Tk 30 billion by issuing Beximco Green Sukuk in 2021.
The stock price of Beximco, which was hovering around Tk 16 each share, shot to Tk 115.6 per share on the bourses after the issuance of Sukuk bonds.
The stock then remained stuck on the floor, which kept the price artificially high amid a lack of buyers.
The recent business performance of Beximco was very poor. Withdrawal of the floor price could reduce the share price of the company drastically.
Salman Fazlur Rahman, owner of Beximco, was investment adviser to former prime minister Sheikh Hasina.
Islami Bank Bangladesh
Islami Bank was acquired by government backed S. Alam Group. Amid its poor financial results, the floor price kept the stock up on the exchanges.
Islami Bank Bangladesh witnessed a massive change in its board and management in early 2017. The board's chairman and managing director along with a number of directors were replaced overnight.
Shahjibazar Power
Shahjibazar Power Company is a sister concern of YOUTH GROUP. Shahjibazar produces electricity from natural gas and supplies to Bangladesh Power Development Board (BPDB). Currently its operation is closed.
Bangladesh Steel Re-Rolling Mills
Bangladesh Steel Re-Rolling Mills Limited (BSRM) is a leading steel manufacturing company located in Chittagong, Bangladesh.
Meghna Petroleum
The state-run Meghna Petroleum is engaged in the procurement, storage, and marketing of petroleum products on behalf of the government.
Khulna Power Company
Khulna Power Company was jointly owned by United Group and Summit Group. Summit group was very close to the former government.
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